Companies

There haven’t been any surprises regarding corporation tax in this Autumn Statement, moreover a confirmation of the previous changes that have been announced and were already expected. This follows the stated theme of providing certainty for companies doing business in the UK. It seems a case of maintaining a steady ship, and perhaps saving a corporate tax rate cut, (where there had been rumours of a cut to 15 per cent) for a later date, should these be required in a post Brexit environment.

Turning to the changes that were already announced and now confirmed, the interest deductibility rules and the loss relief changes will now be brought into effect from 1 April 2017.

Philip Hammond confirmed that he would be continuing with the Business Tax Roadmap, which looks to not only consult and implement the OECD BEPS recommendations, but to look at how to simplify the tax system. There could be changes afoot for smaller businesses regarding sole traders who incorporate and also how they extract their profits, and this will be consulted on shortly.

Continuing the theme of making the UK a popular place to do business it was announced that there will be further consultation on R&D tax relief for large companies, as part of the £23bn investment into innovation and infrastructure.